Illinois, poverty capital of the Midwest

Smoke-and-mirrors budgeting sends lives up in smoke

There is an air of unreality to the
progressive but dishonest state budget proposed this week by Gov.
Rod Blagojevich. It is hard to object to “Preschool for
All,” the governor’s proposal to allow all 3- and
4-year-olds to enroll in state-funded preschools, and the big
election-year capital spending program will buy some needed
improvements. But nobody can be very happy about the
governor’s budget, because the money for these new programs
will come, not from economic growth or responsible taxation, but
from borrowing, gambling, and various other get-by gimmicks. This
is not a tax-and-spend governor but a no-tax-but-spend-anyway
governor. Most disappointing is that his strategy will probably get
him reelected. There is a larger picture, asking for a
larger leader. The poverty rate in Illinois is the worst in the
Midwest, according to the nonprofit Heartland Alliance, in a report
released this month [see Joan Villa, “State of the
poor,” Feb. 2]. Since the group’s first Report on Illinois Poverty six years ago, 342,716 more Illinoisans are in poverty. The rate has gone from 10 percent in
1999 to 12.4 percent in 2004. More than 1.5 million Illinoisans live in
poverty, and more than a third of them are children. “Most of us think of Illinois as the
economic engine of the Midwest,” says Sid Mohn, president of
the Heartland Alliance, “but, according to these indicators,
our engine is running out of steam.” Though it is one of the
richest states in the eight-state region, Illinois ranks worst in
the Midwest on overall poverty, child poverty, employment outlook,
the number of uninsured people, homeownership, and the
school-achievement gap. Some of this results from a sluggish national
economy, failed federal policies, and a shift from manufacturing to
service jobs. But, as the report says, “Illinois has yet to
make the comprehensive changes that will usher in a future where
Illinoisans live free from poverty.” As long as the state
relies for its revenue on a flat-rate income tax, and refuses to
increase it, there will never be enough money to fund schools and
the social-service programs that are needed to lift people out of
poverty. According to the poverty report, “Illinois ranks
worst in the nation for the percentage of revenue that public
schools receive from the state.”For the 2003-2004 school year, Illinois paid only 30.4 percent of school costs; the national
average was 48 percent. “Amid growing need, crucial services
for the poor are being eroded by the Illinois state budget
crisis,” the report says. “For the past four years,
Illinois has struggled to balance the budget due to deficits of
more than $1 billion. Such deficits, resulting annually from
Illinois’ structural deficit, are severely impacting programs
critical to the well-being of Illinois’ most vulnerable,
including children, seniors, and families struggling to make ends
meet.” Although the group applauds the governor’s
“All Kids” health-insurance program, which begins July
1, it notes that over the past decade there has been a steady
erosion in the state’s overall investment in human services.
Shiny new programs lose luster when they come at the expense of
emergency assistance, crisis nurseries, children’s assistance
programs, and employability services. “Our budgeting process
is in serious danger of not being functional in the
future,” Mohn says.Lurking behind the statistics on low wages
and incomes is another form of poverty that is rarely recognized in
Illinois. The report calls attention to “asset
poverty,” which makes life precarious for more than one of
five Illinoisans: “It is a person’s assets — a
home, a savings account, a retirement account, or even a college
degree — that provide the foundation for solid economic
standing.” For those who have them, assets are available to
help weather an economic storm. But many families in Illinois have
negative net worth — they owe more than they own. For most
households, the family home is the biggest asset. But Illinois has
the lowest rate of homeownership in the Midwest, and the rate is
worse among minorities (50 percent) than whites (77 percent).
Asset-poor families don’t have the means to survive a crisis.
Never has it been more important for
Illinoisans of goodwill to unite in common concern for the poor.
Politics can take a better turn. Policies can be more humane. This
state can take pride in itself again — if it changes course.